Phoenix Mills - Q1FY21 Result Update - ICICI Securities

Phoenix Mills (PML) reported a washout quarter as expected, owing to the impact of Covid-19, which led to a decline in its retail and hospitality assets revenues and profitability coupled with zero revenues in the residential segment. Reported revenues de-grew ~78% YoY to Rs. 134.7 crore, with core portfolio (commercial + retail + hospitality) revenues down 67% YoY. Reported EBITDA margin was up 460 bps YoY to 52.2%, given cost rationalisation. The company reported a loss of Rs. 42.2 crore.

Valuation & Outlook

PML remains a quasi play on India's consumption story, notwithstanding a steep impact on retail & hospitality portfolio in FY21, given the quality of assets, healthy balance sheet & strategic expansion plans. With only five to six major retail mall developers currently in India, and given PML's USP of operating large format properties efficiently, it is likely to emerge as a superior player in the medium to long term. Recommencement of key malls of Mumbai and Pune are likely to provide some relief in cash flows. We maintain BUY rating with a revised SoTP based target price of Rs. 725/share.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_PhoenixMills_Q1FY21.pdf

Shares of The Phoenix Mills Ltd was last trading in BSE at Rs.617 as compared to the previous close of Rs. 614. The total number of shares traded during the day was 2233 in over 414 trades.

The stock hit an intraday high of Rs. 628 and intraday low of 600.3. The net turnover during the day was Rs. 1378870.

Source : Equity Bulls

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